Answer:
Profit margin = $3 per unit
Explanation:
<em>The profit margin earned is the difference between selling price and the manufacturing cost</em>
Manufacturing cost per unit = variable cost + fixed overhead cost per unit
overhead absorption rate = estimated overhead/estimated machine hours
=$220,000/20,000 machine hours
= $11 per hour
Manufacturing cost per unit = 2 + (11 × 2) = $24 per unit
Profit margin = 27 - 24
= $3 per unit
Answer:
1 year
Explanation:
Under the shelf registration rule the company has to wait for up to 1 year because it is madated that the company file quarterly and annual reports with the SEC, before it can do an "add on" offering under the Security and Exchange Commission (SEC) Rule 415.
Note that the "add on" offering are additional shares issued by a company after going public inorder to raise cash or for expanding into new markets.
A company manufacturing shirts for a department store decides to create a new style of cotton shirt. The company would most likely produce shirts that will be less costly to create.
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